Construction Dispute Boards

Abstract

Legally, construction projects involve specific issues because they bring with them a large number of hazards and related risks. Each project is unique, being accompanied by variations and complications of different natures. Contracting parties usually allocate risk to the party best able to control it. However, there is sometimes uncertainty about who is to bear a particular risk and to what extent. The reason may lay in a poorly drafted contract or in ignoring its provisions. In other cases, the parties are not willing to bear the consequences of the risks allocated to them. These and many other situations often give rise to disputes. Settlement of disputes in construction requires speed, an informal approach and expertise. This is why every good contract includes a dispute resolution system. Adjudication is the most popular alternative to litigation as it is a fast and relatively cheap way of settling disputes. An impartial, third body known as a ‘Dispute Board’ is responsible for resolving the dispute between the parties.